'Toss DNA' Driving Innovation in Finance Also Infused into Insurance [Finance Inside]

Lee Junmok, Leader of Toss Insurance System Platform Team
"Optimization of Work Systems Including Agent-Exclusive App"
Surpasses 2,000 Agents... Majority in Mid-30s, Young Demographic

"We will implant the 'Toss DNA,' which sparked fintech (finance + technology) innovation, into insurance."

Easy remittance without certificates and lifetime free transfers are representative innovative products that contributed to Viva Republica (Toss) advancing as a comprehensive financial platform. Toss employees call the organizational culture that enables such innovation the Toss DNA. Toss DNA is triggering a 'catfish effect' that sparks innovation competition across the fintech industry, including conservative banking and securities sectors. Lee Junmok, leader of the Toss Insurance System Platform Team, said, "Many Toss customers want to have their insurance objectively reviewed," adding, "Our role is to extend the good experiences gained at Toss into the insurance domain."

Toss Insurance is a corporate insurance agency (GA) subsidiary of Toss, established in November 2018. At launch, it only conducted telemarketing (TM) sales, but in February 2022, it created face-to-face channels and actively expanded the number of planners. In the first half of this year, Toss Insurance's planners surpassed 2,000. In the GA industry, where competition to recruit planners with high incentives is fierce, Toss Insurance rose to the top 20 GAs by the number of planners without mergers and acquisitions (M&A). The goal is to reach 3,000 planners by the first half of next year.

Lee Junmok, leader of the Toss Insurance System Platform Team, is being interviewed by Asia Economy.

The average age of planners is in the mid-30s. Compared to the average age of planners affiliated with life and non-life insurance companies, which is in the late 40s, this is a team more than 10 years younger. The 13-month retention rate of Toss Insurance planners in the first half of this year is 90%, more than twice the industry average of 40%. Lee explained, "Generally, insurance companies create subsidiary GAs and inject digital technology into overall operations, but we started with IT and then moved into insurance, so operational convenience is outstanding," adding, "This is why many young planners have joined without settlement support funds."

When planners meet customers, they use a dedicated application and product navigator. The planner-exclusive app helps check the customer's insurance status and digitally proceed with subscription planning consent. The navigator instantly recommends the top three cost-effective products sold by insurance companies when gender, age, and insurance type are entered. Lee said, "Ultimately, we plan to integrate generative AI to further enhance personalized customer services," adding, "If planners use generative AI, not only customer acquisition but also long-term management will become easier."

Toss Insurance achieved its first turnaround to profitability since its establishment in the first half of this year. Compared to last year, it moved from an 8.4 billion KRW deficit to a net profit of 350 million KRW. Sales in the first half of this year were 52.5 billion KRW, a 229% increase compared to the same period last year. The number of new contracts was 61,737, a 107% increase compared to the same period last year. During the same period, the amount of new contracts grew 157%, from 1.92 billion KRW to 4.94 billion KRW. Lee said, "We made great efforts to improve work efficiency by frequently exchanging feedback with planners," adding, "These efforts based on Toss DNA seem to have led to high customer satisfaction and good results."

The biggest topic in the GA industry next year is the introduction of the insurance sales specialist company system. Unlike existing GAs that only act as agents for concluding insurance contracts, insurance sales specialist companies are financial firms that mediate insurance contract conclusions. If this system is introduced, GAs will be assigned financial firm-level responsibilities but will gain the right to negotiate sales commissions with insurance companies, potentially changing the industry landscape. Lee said, "If GAs convert to insurance sales specialist companies, there are many complicated requirements such as information linkage with insurance companies and building security systems," adding, "Because we have the excellent IT infrastructure and security level established by big tech Toss, we will have a significant competitive advantage within the GA industry."

Lee served as the head of Naver Knowledge iN service, member service planning team leader, and service policy office from 2006 to 2013. From 2013 to 2021, he held roles at Kakao including user protection, customer service, and youth protection officer (director). He joined Toss as an operations strategy leader in 2021 and has led the Toss Insurance System Platform Team since March this year.

Lee Junmok, Leader of Toss Insurance System Platform Team.